EU considers strategies to hinder avoidance of CBAM implementation
European Commission Ponders Expansion of Carbon Border Adjustment Mechanism (CBAM)
The European Commission is contemplating an expansion of the Carbon Border Adjustment Mechanism (CBAM) to encompass additional product categories, aiming to prevent circumvention by foreign firms. The CBAM, set to come into force on January 1, 2026, currently covers cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen.
The Commission's proposed extension would not be limited to the initial sectors, but could also include downstream products. This move is intended to counteract potential bypassing strategies by foreign companies, thereby ensuring a comparable CO2 pricing level for imports. However, the exact list of new products under consideration remains undisclosed in available sources.
The Commission's concern stems from the possibility that CBAM could be bypassed by foreign firms redirecting low-carbon products to Europe while still producing high-carbon goods for export to other markets. To combat this, the Commission is considering a system that assigns a fixed CO2 emissions value per country or per company to imported goods.
Exporters, particularly in the electricity sector, have found the new CBAM system challenging to adapt to. Despite their difficulties, requests for a postponement of CBAM's implementation date have fallen on deaf ears in Brussels.
The implementation of CBAM is expected to have a significant impact on the EU's neighbours, including the Western Balkan countries. The Commission is also keenly aware of the potential for CBAM to be circumvented by Chinese exporters, as suggested by a senior EU official.
In response to these concerns, the Commission plans to propose measures by the end of the year to prevent exporters from avoiding the Carbon Border Tax. The Commission's ultimate goal is to ensure a level playing field for European businesses and to encourage global efforts towards reducing carbon emissions.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Tobacco industry's suggested changes on a legislative modification are disregarded by health journalists
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
